BEIJING -- China Netcom, one of China's leading telecommunications operators, has awarded Nortel Networks (NYSE:NT)(TSX:NT) a contract -- estimated to be worth approximately US$15 million -- to deploy a national multiservice backbone network.This new network is expected to cover more than 110 major cities all around China, and to position China Netcom to provide Internet Protocol (IP) virtual private networks (VPNs) and other data services for government and enterprise customers. It is expected to be in operation by March 2003. China Netcom plans to deploy several multiservice switching solutions from Nortel Networks Passport multiservice portfolio. Nortel Networks Passport 15000 and Passport 7000 Multiservice Switches and Passport VPN Extender Cards will position China Netcom to drive increased revenues, while fully leveraging existing infrastructure and extending current frame relay and ATM services. "The national backbone is expected to play a key role for China Netcom to exploit data markets by providing abundant, high-quality and differentiated services to better satisfy customer demands," said Leng Rongquan, vice president, China Netcom. "The contract marks a new beginning for China Netcom and Nortel Networks to further expand our cooperation.""China Netcom's selection further reinforces our networking strengths and our leadership in building high-performance multiservice networks in China," said Robert Mao, president and chief executive officer, Nortel Networks China. "The new network will not only provide better quality of service for frame relay, ATM and IP VPN services for enterprise customers, but also lay a foundation for future third generation (3G) wireless data and next generation network (NGN) services."Nortel Networks Corp.China Netcom Corp. Ltd.